Put in to bat in challenging conditions after the rain reduced the contest to 43 over a side, the Netherlands found themselves reeling at 140 for seven before their captain Scott Edwards staged a remarkable recovery with an unbeaten 78 off 69 balls to take his side to a fighting 245 for eight.
With the pitch offering variable bounce and some turn, the Netherlands sniffed an opportunity against a formidable South African batting unit which crumbled under pressure to be all out for 207 in 42.5 overs, handing the Dutch their first World Cup win against a Test playing nation.
Until Tuesday, the Netherlands had only beaten fellow associate nations Namibia and Scotland in their World Cup history, having made their debut back in 1996.
The surprise outcome came 48 hours after Afghanistan shocked defending champions England in Delhi, adding to the unpredictability of the 10 team competition.
The Netherlands, who qualified for the their first World Cup since 2011 by finishing second in the Qualifier earlier this year, have shown significant improvement over the years.
The Dutch had humbled the Proteas in T20 World Cup 11 months ago and at the scenic Dharamsala on Tuesday, they recorded another famous win over them in a less unpredictable format.
At the start of the tournament, Bas de Leede, one of the few full-time cricketers in the team, had expressed delight at cricket being shown live on TV back home after four years.
After a landmark performance, he and his team are likely to attract more followers in a football mad nation.
With the Netherlands reducing South Africa to 109 for six, only David Miller (43) stood between them and a memorable win.
De Leede dropping a regulation catch off Miller in the deep raised the